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Bonanza for CSIRO after landmark patent win

THE CSIRO has won a long legal battle with the some of the world's leading technology companies in an outcome that will give a substantial financial windfall to Australia's peak scientific body.

The case revolved around the CSIRO's patented wireless local area network technology, a process invented in the 1990s that is being used in almost every wireless device - including mobile phones, computers, game consoles, networking equipment and internet-enabled TVs. "We are very pleased with the outcome in financial terms," said Mike Whelan, the deputy chief executive, operations.

"In aggregate, it will present the largest amount from IP [intellectual property] that this organisation has ever earned."

Based on the outcome of recent technology patent cases, the settlement is likely to run into millions of dollars.

On Monday a judge in Texas finalised the settlement after the last of the 14 companies accused of infringing CSIRO's patent agreed to negotiate. Under the terms of the settlement CSIRO was prevented broadcasting news of the resolution, which is why it has only now filtered out.

The companies which CSIRO took to court represented the who's who of the technology world and included Hewlett-Packard, Intel, Dell, Toshiba, Asus, Microsoft and Nintendo - some of which had settled before the case went to trial this month.

The settlement terms are confidential but, according to Mr Whelan, include one-off compensation payments, agreements to pay ongoing royalties and a combination of the two.

"We are going to reinvest the proceeds into further research," he said.

Mr Whelan said that for the foreseeable future CSIRO's technology would continue to be the standard wireless technology, ensuring a steady flow of royalties in the years ahead.

Microsoft's settlement with CSIRO came as the case got under way last week, making it the second time this month it has suffered a patent setback against Australians.

Last week, an Australian inventor, Ric Richardson, was the main beneficiary of a $US388 million ($537 million) damages award against Microsoft, after a US jury found that the giant US technology company had violating his patent relating to anti-piracy technology.

While not willing to be drawn on the size of the payout, Mr Whelan said it was a "very substantial case", which had required a team of 30 people working for the CSIRO to prosecute the case against the companies that were party to the litigation.

CSIRO argued that a patent which was granted to it in 1996 entitled it to royalties from any company that incorporated the 802.11 wireless standard in their devices.

The lawsuits against the technology companies had been running since 2005.

The court case, which had been under way for a week, was taking place before a jury of eight in the US District Court, in Tyler, Texas - a jurisdiction that has become a hunting ground for organisations seeking to defend their intellectual property rights.

Tyler and the neighbouring town of Marshall have developed a reputation over the years for conducting quick trials in what are typically complicated patent disputes and for plaintiff-friendly juries.

And for defendants, the odds of winning a patent dispute reportedly make settlement the better option.